In good times or bad, through thick or through thin, all those people who are successful at setting goals and attaining them are the ones who’ve created a financial plan and followed it. Indeed, if you want to gain financial security, having a well-built plan is the only way in which you can achieve it. Financial plans are well-written, organized strategies for accomplishing all your financial goals and maintaining your financial health. Irrespective of whether you hire a financial planner, it is solely your responsibility to develop and contemplate your financial plan that will be centered on your desires and objectives. Not following a financial plan is the biggest reason for the large number of debtors in the nation who are rushing to the debt consolidation programs and the debt counseling agencies for help. If you’re confused about the steps that you need to take to prepare your financial plan, here are some steps that you may consider.

Discover where your pennies are going: The most important step to take is to develop a budget after detailing where your money goes. Get yourself a notebook and carry it wherever you go so that you can maintain the smallest details of where your pennies are going. At the end of the week, spend an hour perusing your notes and categorizing them. How much did you spend on transportation, how much on food, clothing, entertainment, healthcare, mortgage, rent and utilities? It’s important for you to carry on this for at least 3-4 months so that you exactly know where your pennies go every month.

Set realistic financial goals: Once you’re done with this, you should then ask yourself where you would want to be 20 years from now. Answer it more specifically like you want to pay off your mortgage and have an investment portfolio of $50,000. Be extremely realistic while setting goals and be specific about them. As you want to succeed, you should start off with attainable goals.

Keep a constant watch on your credit rating: It is impossible to get anywhere these days without a good credit score. As you’re entitled to get a free copy of your credit report from the 3 credit reporting agencies, you should check your score once a year with each of the agencies. You may also get a copy of the reports once a year in annualcreditreport.com. Ensure that there are no discrepancies between the credit reports and the records and even if there are errors, take immediate action to dispute them and boost your credit score.

Beat the unexpected odds by getting insured: Do you have a family of your own? If answered no, get yourself coverage on disability insurance to protect your power of earning. And if you have a family and you’re blessed with lots of loved ones, you might want life insurance policy, health insurance policy and homeowner’s insurance policy. Irrespective of your present financial situation, insure yourself against the unexpected odds and avoid blowing a hole in your wallet.